FLPH Updates
Diversify Your Investment Portfolio for Long Term Growth

Diversify Your Investment Portfolio for Long Term Growth

Never put your egg in one basket. Same principle applies in our stocks portfolio. Remember, we are long term investor and we will keep our stocks for long years. On the span of this long years, lots of uncertain things could happen. Though being a long term investors for blue chip companies makes as less vulnerable to risk, we can also add diversification technique as added assurance of the strength of our portfolio.

In the Truly Rich Club stock update, Brother Bo Sanchez is suggesting us various stocks coming from different industries.

Let me first tell you how the Philippine stocks are categorized.

diversify

 

PSE stocks are classified as:

PSEi. These are the stocks that are included in the index to monitor the performance of the Philippines stocks. There are more than 200 companies participating in the Philippines stocks exchange. Getting the average of all of it is not a good idea, so PSE only chooses 30 top stocks to represent the performance of the market.

Financials. This is composed of financial sector companies like banks. Ex. BDO, BPI, PNB

Industrial. This is composed of industrial related companies. Ex. EDC, FGEN, MWC

Holding Firms. This is composed of various holding firms companies. Ex. AGI, MPI, SM

Services. Composed of service sector companies. Ex. ABS, GMA7, BLOOM, TEL

Mining and Oil. Composed of companies related to mining and oil industries. Ex. ORE, OV, PX, LC

Property. Composed of companies related to properties. Ex. ALI, CPG, MEG, SMPH

 

All we have to do is apply this diverse market in our portfolio.

 

For example, see below the list of SAM stocks in their respective sector.

Services – (wait for future SAM)

Mining and Oil – (wait for future SAM)

Financials – BDO, MBT, PNB

Industrial – MER, AP, SMPH

Holdings – AGI, MPI

Services – (wait for future SAM)

Property – MEG, SMPH

Mining and Oil – (wait for future SAM)

 

Here’s my portfolio for your reference.

myportfolio

No one can tell you how much stock percentage for each sector. It is up to you to decide. As long as you are buying SAM stocks, you are doing the right thing.

Keep on buying stocks and accumulate them for long term growth. Happy investing!

 

About Richard Macalintal

Hi my name is Richard. I am a Registered Financial Services Consultant in Singapore. If you have any queries or you need help on your insurance policies and investment linked products, feel free to message me :-) We can have a cup of coffee while I do financial review and give advice with regards to your finances :-) Contact me thru email rlmacalintal(at)yahoo.com or SMS me +65 82235186. Disclosure: I am a Financial Consultant of AIA. The statements or opinions expressed on this site are my own and do not necessarily represent those of AIA.

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